Alice Pickering
Wyoming Area ReporterA resolution passed Feb. 2, by the Wyoming City Council, authorizes the Chisago County HRA and EDA to proceed with a redevelopment project within the city and the construction of the East Central Branch Library. A public hearing preceded the vote.
Carolyn Drude of Ehlers & Associates, city financial advisors, said the city must grant permission for the Chisago County HRA and EDA to build within its incorporated limits.
The vote was 4-1, in favor of the resolution, with CM Martin English voting against it. Contacted later, English said he is not opposed to the library, but is concerned about fitting it and the city hall annex into the space available, between and around the post office and the existing city hall. His impression is that it will be ìjammed onto the site.î
Another concern is the proposed name for the building: the Wyoming Area, Giese Memorial Library, an East Central Regional Library. He believes it is too long and unwieldy. As a memorial, the name should be sufficient, he said.
Sheree Vincent, chair of the Wyoming Society, was pleased about the vote and is eager for construction to begin. Others in attendance were John Moosey, Chisago County administrator and State Sen. Sean Nienow.
Polaris action
By a unanimous vote, the council passed a resolution to formally move forward with legal documents regarding the sale of the cityís wastewater treatment site to Polaris Industries, Inc. and the beginnings of a development agreement. The development agreement will govern the decommissioning of the treatment plant and Polaris construction of a research facility.
Moving forward with the sale of wastewater treatment site is tied to the hook-up with the regional sewer system with the money from the sale being used to pay for the cityís hookup share. Cost is estimated at $3.86 million.
City Attorney Tom Miller said while there are a lot of documents to put together, the deal is ìdoable.î Miller said the long term costs and benefit are significant. He said the partnership between the city and Polaris is a good one, and the ìproject can make sense for the city.î
According to Engineer Lee Elfering, the city will need to expand its wastewater treatment system in four to five years maximum. Now, the city has a buyer for the 620 acre site that it might not have in the future, and it is unlikely the parcel would sell as one piece, the city would be faced with having to come up with funds to expand.
The sale price of the property will nearly cover the cost of connecting to the sewer system. Any expansion of the existing system will cost the city. He believes it to be a ìprudent decisionî to do so now.
Comments
CM Lynn Koalska said the city has set at $4.18 million the number beyond which it cannot go. It also does not want to resort to assessments to residents to finance these improvements. It is anticipated much of the money will come from the water and sewer hookup charges.
The city may be a little short of money when considered in comparison of the cost of the pipeline. The balance of the cost for the pipeline can be financed with a loan from the Public Finance Authority, a state agency.
Drude said the city would try to keep this loan as low as possible. Interest rates are about 3 percent. If there is an anticipated delay in the hookup of the city to the pipeline, the city could approach the county to set up an abatement program to be used only if necessary.
here is a projected balance of about $1.9 million that could be paid to reduce the principal on project cost. The city could negotiate a lower payment at the same interest rate and reduce payments for the balance of the 20-year payback schedule.
At the end of 2007, there is a projected positive balance of $1.9million that could be paid to reduce the entire project cost.
City Administrator Jill Teetzel, though new to the situation, said, ìI donít think you can pass-up the opportunity.î Improving the existing system or delaying the connection to the regional system will probably cost more in the future, she said, adding. ìI donít think you have a choice.î
English acknowledged the element of risk, but said if there was to be no Polaris plant, and no revenue from the sale of city property to the company, the city would still have to improve the sewer anyway. With the sale of the land, the project is ìalmost a wash.î Polaris is a ìoverwhelming benefit.î
CM Sandy Standridge said if the city can ìmake ends meet, it is a good project.î She is pleased with the efforts of Polaris and others working on this project.
CM Ted Phillips believes there are too many ìifs.î He believed the sale of the property would cover the cost of the sewer system and is ìuncomfortable with the risk to the city.î
Drude agreed there are risks but said they have been kept as minimal as possible. Miller noted the gap between money from land sale and cost of the project, to be funded by tax abatement, is a smaller risk for the city now than at the beginning of the talks.
Mayor Vern Haag said the city can handle the risk. The city has the support of Rep. Pete Nelson and it is to the advantage to keep the project going. The Chisago County board, DEED, PCA, and Sen. Nienow are all in support.
As with any development, it is a ìrisk no matter what we do,î the mayor said. He contends the city has been ìconservative in its approach.î
City Hall annex
Council approved a contract for Jack Anderson to complete the space needs study for the city hall annex for an amount not to exceed $9600. The vote was 4-0. English was unable to stay for the entire meeting.
The only reservation about the contract came from Miller. He said the contract is a standard AIA document. Any drawings that are prepared remain the property of the architect, even though he/she is compensated for them. It is the same as copyrighted material.
Completing the space needs study may give Anderson an advantage when bidding as an architect.
If he were to be chosen as architect, any costs would be credited against any costs incurred. Money to pay for this work is to come from the general fund.
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